The role of social capital in shaping livelihood for rural Vietnamese households

Abstract

This study explores the role of social capital in the livelihoods of rural households in Vietnam, examining both direct and indirect impacts. The author uses a revised sustainable livelihood framework to analyze social capital, focusing on bonding-bridging and linking forms. The study applies quantitative methods to a secondary dataset from a rural household survey, including entropy-weighted indicators, cluster analysis, and SEM models. The findings suggest that social capital has complex and significant impacts on household livelihood strategies. Bridging and linking social capital promotes non-agricultural and wage-based strategies, while bonding social capital drives transfer-based strategies. The study highlights the importance of social capital as a complementary resource to other livelihood capitals, such as financial, human, and physical capital. These results have important implications for policy implementation aimed at supporting rural households and their livelihoods, especially regarding social capital’s interaction with other livelihood capitals. By understanding the complex relationship between social capital, other livelihood capitals and livelihood strategies, policymakers can design more effective policies that harness the potential of social connections to support rural households.